Evening star. [volume] (Washington, D.C.) 1854-1972, 1887-08-15
THE NEW NAVY.
Contracts for Cruisers and GunbOats
Awarded TODAY.

Awarded To-day.
SAN FRANCISCO GETS ONE OF THE CRUIsERs-THE
LETTER OF SECRETARY WHITNEY RECOMMENDING,
AND THE ENDORSEMENT OF THE PRES lpENT AUTHOR
IZING, THAT AWARD.
The secretary OF the Navy to-day awarded the
contracts for constructing the five new naval
sells, for which bids were opened recently Cruiser
NO. 1, the Newark, Is awarded to Cramp Il Sons
for 81, ,24S,OOO the Departments plan for hull and
the contractors plans for machinery; cruiser No.
4 TO Cramp & Sons contractors panS for
600; cruiser No. 5, Union Iron Works. Of San
Francisco. Departments plans for hull and ma
chinery, for 81. .42S, 900, and gunboats Nos and
10 N. F. Palmer, jr, d Co., OF New York, (Roach'S
assignees), at S49O, 600 EACH
SECRETARY WH1TNEY's LETTER TO THE PRESIDENT.
The following correspondence explains itself:
NAVY DEPARTMENT, WASHINGTON, aug. 13, 1887.
SIR: Herewith submit the papers showing the
result OF the recent bidding for the construction
OF cruisers Nos. and ). A question arises under
approprlatlng for these ships directed that one OF
them should be built "on or near the coast OF the
Paclnc Ocean, or the waters connected there
Wlth. II was 1urtner provided, however, as fol-
lows III IL snail appear TO the satisfaction OF the
President OF the United States from the biddlngs
dot saiu a c9htract when the same are opened and
examined by him. that said vessel cannot be con-
structed at fa1r cost on or the Pacific Ocean,
he shall authorize the construction of said vessel
elsewhere Ia the United States"
Three forms OF bidding for the ships recently ad-
vertised We're permitted and invited by the De-
par'ment, OF which an explanation is necessary.
two years the department has required definite
results TO be guaranteed by the contractor; re-
suits fixed at about the highest point reached by
the best Sh1pbuilderS In the world.
In the matter OF machinery the point was fixed
at about ten horsepower to each ton Of machinery
This marked wide departure from the previous
narftp no
requirements The guarantee required from the
contractor has been In such case coupled with Sc
we're penalties for failure and adequate premiums
for success
1t Will be seen that an essential feature Of this
method or contracting Is that the contractor
should be Permitted to have something to say
Win reference To the plans. The amount Of his
compensation being dependent upon the results
attained, and the merit OF the Ship depending
pecuniarlly interested In improving the plans. He
IS made partner with the Government to raise
the character OF the ship.
The Department, therefore, opens the door to
private enterprise in this matter by allowing more
than one form OF bidding. 1t submits to compe-
tition IT'S own plans, and invites bidding upon
them, but 1t permits any Ship builder who thinks
they can be improved tO suggest alternative plan
for accomplishing the same notwithstanding him
self responsible pecuniarily for their success.
The system necessarily avoids the rutS common
with Government work, for the art changes and
Improves, the Government, by constantly holding
out premiums for improved results is the first to
secure them.
The conditions Of the recent letting were much
more exaeting than any previously imposed.
Congress- In authorizing the construction Of
cruisers No. and ), prescribed that the contrac-
tors should assume to guarantee a speed of nine
teen knots per hour, with penalty OF $4,000 for
each quarter knot OF failure in speed, and an
equal premium for each quarter knot Of excess in
speed attained. This, under the trial conditions
laid down by the Department., constituted a de-
mand for cruisers The equal. and probably the
superior, OF any heretofore built.
The contracts were, however, bid for by two re-
sponslee concerns. Bids We're permitted to be
made in three ways.
l. The Departments plan OF hull and machinery.
2. The bidders plans Of hull and machinery
3 The Departments plan OF hull and the bid
der'S plan or machinery.
The bids were as follows:
Name Of Bidder. Cruiser. Class Of Bid. Price
Union Iron Works. 4Or5 SI,42S. 600
VIM. Cramp & Sons. and 5 Lilo, 900
WIN. CraIIp Sons. and 3 3 1850 600
VIM. Cramp & Sons. and ) 2 l. 32J 900
VIM. Cramp Sons. and 5 ) 100000
have compared, with the aid OF the chiefs OF
the Bureaus OF Construction and Steam Engineer
ing. the various plans, and, in accordance with
their advice, respectfully recommend that one
ship be built upon the Departments plans, and
Sons for $l35o, 900 be accepted. With this latter
bid original designs are submitted.
These plans differ somew hat from those OF the
Department. The proposed ship is larger In ton
mage with thicker protective deck, lighter In
struction In parts, and stronger in Others. A
cheaper mode OF construction Is adopted in some
ployed. The hull designed by the bureau Is more
expensive to build: but which is the better one on
the Whole no one can, at the present ume, safely
predict. think there Is every advantage In build
ing both, and so recommend
AS to the comparison OF the bids submitted for
the bureaus ship the bid OF Cramp l. Sons Is
$4,000 lower than that OF the Union Iron Works.
San Francisco.
You are to say whether from the bidding it ap-
fair price for the work.
1t was clearly not intended that the lowest bid
der should necessarily be entitled to the contract
for this rule was easy to state and had been the
law In previous cases. On the contrary, Congress
apparently had in view the difference in the con-
ditions OF the different parts OF the country for
this work, and intended to permit the President
to consider these differences in determining upon
what should be deemed a fair price. This differ
ence OF $4,000 in the bids with not cover the DIFF
ference in freight against California upon mate
rials necessary at the present time to be pur-
chased In the East. Very respectfully,
w. Z. WHITNEY,, Secretary or the Navy.
AWARD OF CONTRACT TO THE SAN FRANCISCO CON-
PANY.
EXECUTIVE MANSION,
WASHINGTON, August Is, 1887.
Under the provisions Of the act OF Congress au-
thorizing the construction OF the ships herein re-
ferred to, which act requires that OF said ships
should be built on the coast Of the Pacific ocean
or the waters connected Herewith, unless the
same cannot be there constructed at fair cost:
and the bid OF the Union Iron Works OF San Fran
cisco being within OF the lowest bid for the
ship to be constructed according to the plans OF
the Navy Department., which sum OF $4,000 does
not more than cover the difference against the
Pacific coast Of the cost of necessary
transportation OF materials, and the bid by
said company not appearing to be in excess
OF the fair cost OF said ship, do hereby pursuant
to said statute, and in accordance with the mani
fest intention Of Congress In the premises au-
thortze and direct that the contract for the con.
struction Of the ship within named to be built ac-
cording to the plans Of the Navy department, be
given to the said Union Iron Works Of San Fran
cisco. GROVER CLEVELAND